N.S. Liberals make case for policy changes

Sean Fraser bristled on Friday when he was asked if the federal government announced a three-year carbon tax exemption on home heating oil because the Liberals have dipped in the polls. 

The announcement Thursday by Prime Minister Justin Trudeau also doubled a rural supplement to the tax rebate and put in place a program he said will help rural Canadians switch to electric heat pumps. 

“We’ve learned over the course of the past eight years that you don’t get very far if you make decisions in boardrooms in Ottawa, close the doors and pretend that you can never change the policies that you’ve put in place,” said Fraser, the federal housing and infrastructure minister and the MP for Central Nova. 

“So, the motivation for this comes from conversations in communities in Nova Scotia, rather than taking a look at the political landscape. I don’t believe in doing what’s popular unless it’s doing what’s right, and in this case my view is we’re doing the right thing.” 

Fraser and three other Nova Scotia Liberal MPs held a news conference in Halifax on Friday to promote the program to make heat pumps more easily available. 

“It’s going to make a big difference,” said Kody Blois, MP for Kings-Hants. 

“We believe in the intent of the carbon pricing policy, but the adjustments are necessary to make sure the lived realities of the people we represent are recognized.

“This is not a step back on environmental progress. This is about saving people money.” 

Fraser said the government is making a “massive” investment in heat pumps. 

“Just to give you a sense of the scale, this is potentially a half-billion-dollar program, reserved for a pilot in Atlantic Canada. For households with a median income or below, the heat pump (will be) free, in partnership with provincial delivery partners. For those households above the median income, they’re going to have access to a zero-cost loan that will be paid off over time with the savings that people will (achieve) from lower energy costs.” 

Fraser acknowledged it could take a while for everyone who wants a heat pump to have one installed. 

When Ottawa decided provincial measures on reducing carbon were insufficient, it announced in July a federal carbon tax for the Atlantic provinces

However, Conservative Leader Pierre Poilievre said the changes don’t go far enough and that Trudeau’s motivations might be influenced by his standing in the polls.

According to a government news release, these changes have been made to the carbon tax:

• Rural top-up increase: Starting in April 2024, the government will double the Climate Action Incentive Payments rural top-up rate from 10 to 20 per cent. This means that people in rural areas will receive a larger rebate to help with energy costs.
• Heating oil tax pause: For the next three years, there will be a temporary pause on the federal tax for heating oil deliveries in areas where it’s applied. This pause will start 14 days after Thursday’s announcement.
• Promoting electric heat pumps: In Atlantic Canada, a program will offer an upfront payment of $250 to low- to median-income households making the switch. They are also increasing funding for installing heat pumps from $10,000 to $15,000.

“Today’s announcement is good news for Atlantic Canadians, rural Canadians, and people across the country. We are putting more money back in your pocket and making it easier for you to find affordable, long-term solutions to heat your home. These measures will help make a real difference,” said Trudeau on Thursday. At a news conference in St. John’s on Friday,

Poilievre criticized Trudeau’s carbon tax policies and their impact on rural communities. He raised concerns about the added financial burden the tax would place on households. 

“This is a scam designed to trick oil-heating households into voting for him one more time before he can hit them with his big tax hike,” said Poilievre. 

“Only the common-sense Conservatives will axe the tax entirely.”

With Cameron Kilfoy in St. John’s